The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, FEBRUARY 13, 1391. WORSE CONFOUNDED.

Hokitika Guardian, 13 February 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, FEBRUARY 13, 1391. WORSE CONFOUNDED.

The financial muddle in Australia grows worse confounded. Many valuable weeks have been wasted and lost since the Mother State and the Commonwealth alike elected to swap horses when attempting to cross a financial morass. The country lias ncvei- settled down to rehabilitation really, despite the fact that Sir Otto Niemoyer was invited to visit and point out the way. The advice and direction of the State and Commonwealth banking authorities has also been ignored. Mr Scullin for some time full of brave words and optimistic promises, lias become a cypher in the situation. For some reason not disclosed he elected to drop the two faithful Ministers who had held the fort in liis absence, and elevate Mr Theodore who had become discredited in public life because of alleged transactions on irregular lines in Queensland. Mr Theodore is something if a mystery financier. He is supposed to he a,hie and resourceful in directing finance, yet the muddle of Queensland finance under Labour rule hardly sustains that commendation. He has proposals on the stock at present which appear to lie a direct attempt at inflation. H ( , wants more credit b he given by the hanks which arc without the financial hacking to give legitimate security to the credit. He is to negotiate with the Commonwealth Bank on the subject. and the meeting means an appeal for more easy money to prop up State activities in ,'the Labour interests. Neither he. nor Mr Lang, propose anything heroic in the endeavour to really lift Australia out of the slough of financial despond. Mr Lang nlumps definitely for partial repudiation at least and has thereby ropndindown the credit of the country with a crash. Some of the securities are only half value, and it is doubtful if a forced sale in any real volume would realise even that percentage. All this is happening despite advice from all quarters of the madness of these Labour leaders’ proposals. A great deal has been attempted by adding taxation, hut this has been only a bur-

den on industry and has accentuated the unemployment throughout the land. Despite this, wages are maintained and hours of work shortened, and gone-rally any and all concession is made for the nominal advantage of the worker, hut really to lii.s undoing lor tin; country is being placed in a mo'-t dilfu ult position, and not only is there a lack o; enterprise, hut there is also stagnation throughout the land. I lie situation is i tally had and iont:nlies to grow worse, without ligitimate elfort to retrieve matters. The condition of Australia and its appalling drift is all to the discredit of Labour ride !.n difficulty and emergency. This is a, period of true test for statesmanship, hut the manifestations ol it, as seen by the limpness of Mr Seiillin, the mystery of Air Theodore’s movements, and the open and flagrant effect ol Mr Lang's proposals, all suggest liow bankrupt the Labour party in Australia is for such a crisis. Ever since Labour came into ascendency in Aus-ralia last year,, there have been those advocating wild cat pleasures to deal with finance. Repudiation was heard of over and over again, and would have been practiced hut for the strength of Messrs Fenton and Lyons. Naturally lacking in training in regard to high finance and the necessity of loo! ring ahead and not living only in the present, the average Labour leader appears to he without training and experience for critical times in regard to finance. Accustomed to stable times and easy come and easy go methods, a stringent period is disconcerting, and the 1. a hour leaders are not equal to the occasion. However. Australia is approaching a very critical time indeed. T:lte present condition seems to he huriyi'ng to a climax and that will involve a very grievous time unless the confidence of the financial world can he retained. At the time of writing it is in danger of being lost which means serious consequences indeed.